Your first step is to decide whether you want a secured or unsecured loan.
A secured loan occurs when a valuable asset, such as a house or a car, serves as collateral in case you, the debtor, stop making payments (known as default).
You also can get a fixed interest rate (as opposed to a variable interest rate, which may rise) with a home equity loan.
Another option for consolidating your debt is using credit card offers.
Knowing all your options is important before making a major financial decision.
You don't want to entangle yourself in an agreement only to find out you have sunk deeper into debt.
If default occurs, then the company that loaned the money can legally repossess your house or car.
In contrast, an unsecured loan merely uses the debtor's credit to back the loan.
For a definition of APR, please refer to clause (g).In exchange for that risk, they typically charge high interest rates.Many non-profit companies offer debt management as well.They will help you find a debt consolidation loan and provide counseling.Remember that even though they are non-profit doesn't mean there won't be fees attached to some of their services.To avoid hurting your credit when you close accounts, ask the company to report the account as being closed at your request [source: Dunleavey].You also might consider leaving these accounts open, even if you won't use them, because it will improve your debt-to-credit ratio.Instant approval result is applicable to selected applications via our website during 8am to 1am on Monday to Friday, 9am to 1am on Saturday and noon to 1am on Sunday & Public Holidays.Citibank reserves the right of final approval decision.The above example is an illustration and for reference only.The actual reduction of monthly repayment and total interest is subject to the Terms and Conditions of the customer's current credit card and/or personal loan and final approval of the loan amount and interest rate.